Posts relevant to people Age 50 to 70
What assets should be placed in which retirement accounts
In my previous post I discussed about how I would prioritize my retirement savings. I suggested it would be prudent to invest in retirement accounts over time, with the goal of creating tax diversity. That is, by having funds in tax deferred, tax free, and taxable accounts. In this post I’ll discuss what type of […]
Replenishing the First Bucket
In a recent post I discussed the importance of setting up a fixed income ladder as your first bucket of the Buckets Strategy. As a follow up to that concept, I would like to introduce another skill that a retiree managing his own portfolio for income should know. That is when you should sell your […]
Should You Use a Financial Advisor
I am often asked if I use a financial advisor. Financial advisors can be very helpful. In this post I will give my thoughts on whether you should use a financial advisor.
Equity Allocation Revisited
I have written often in this blog how one of the most important investment decisions you must make is selecting your appropriate equity allocation for your retirement portfolio. In my discussions on this topic, I have referenced a simple equity allocation guideline, “100 minus your age,” people can use that I first explained in this […]
A Rules-Based Approach to Retirement Income Withdrawal
The best approach to have an initial retirement income withdrawal rate above the recommended 4% Safe Withdrawal Rate (SWR) (assuming you are willing to periodically adjust your withdrawals when the markets warrant it) is detailed in Ben Stein’s and Phil DeMuth’s 2005 book, Yes, You Can Still Retire Comfortably!: The Baby-Boom Retirement Crisis and How […]
Increasing the Safe Withdrawal Rate, Part III
The third general approach to increasing your Safe Withdrawal Rate (SWR) above the recommended 4% is pretty straight forward. It requires that you be flexible in your spending from year to year. In this approach you increase your withdrawal rate when the financial markets are doing well and you reduce your withdrawal rate when the […]
Increasing the Safe Withdrawal Rate, Part II
In my last post I discussed how the most reliable way that a retiree can increase the Safe Withdrawal Rate (SWR) is to work longer, thereby decreasing the number of years a portfolio must support someone in retirement. In this post I will discuss the one situation where it is possible to have your cake […]
Increasing the Safe Withdrawal Rate, Part I
In my last post I discussed how the 4% recommended Safe Withdrawal Rate (SWR) can be increased, if you are willing to accept a higher probability that your financial portfolio will not last 30 years. In this post I will provide some thoughts on one of the ways that you can increase the SWR without […]
Can I Violate the 4% Rule?
In many of my past posts I have mentioned “the 4% rule.” The 4% rule is a reference to the recommended Safe Withdrawal Rate (SWR) for withdrawing retirement income from one’s financial portfolio. If you are not familiar with the 4% rule, you should read my previous post where I explain the concept. In this […]
The Third Bucket; Is 15 Years Long Enough?
I got an e-mail question in response to my last post on The Bucket Strategy. The question was in regard to the length of time a retiree should wait before dipping into the third bucket. I thought the e-mailer had a good question, given the poor equity markets returns since 2000, is 15 years an […]
